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Murfreesboro, TN Bankruptcy Exemptions

Tennessee Bankruptcy Exemptions

View the chart below for details on property you can exempt or protect from creditors when you file bankruptcy in Tennessee. You may exempt property that falls into one of the categories below, up to the dollar amount listed. You may be able to keep this exempted property after you file bankruptcy. Please note that there are certain Non-dischargeable Debts which you will not be able to erase in bankruptcy.

ASSET

EXEMPTION DESCRIPTION

LAW SECTION

Homestead

$5000; $7500 for joint owners Life estate

2-15 year lease

Spouse or child of deceased owner may claim homestead exemption

Property held as tenancy by the entirety may be exempt against debts owed by only one spouse

26-2-30126-2-302

26-2-303

26-2-301

In re Arango, 136 B.R. 740, affíd, 992 F. 2d 611 (6th Cir. 1993)

Insurance

Accident, health or disability benefits for resident and citizen of Tennessee Disability or illness benefits

Fraternal benefit society benefits

Homeowners insurance proceeds to $5000

Life insurance or annuity for spouse/children/dependent relatives – exempt from all claims

26-2-110

26-2-111(1) ( C)

56-25-1403

26-2-304

56-7-03

Miscellaneous

Alimony owed for 30 days before filing for bankruptcy Property of business partnership

Personal injury recoveries to $7500 (not to include pain and suffering); wrongful death recoveries to $10,000 (you can’t exempt more than $15,000 total for personal injury, wrongful death & crime victims compensation)

26-2-10326-2-305, 46-2-102

26-2-111(5)

26-2-111(3)

26-2-111(2) (B)

26-2-111(2) ( C)

Public Benefits

Aid to blind Aid to disabled

Crime victims compensation to $5000 (see personal property)

Local public assistance

Old-age assistance

Social security

Unemployment compensation

Veterans benefits

Workers compensation

71-4-11771-4-1112

26-2-111(2) (A), 29-13-111

26-2-111(1) (A)

71-2-216

26-2-111(1) (A)

26-2-111(1) (A)

26-2-111(1) (B)

50-6-223

Tools of Trade

Implements, books & tools of trade to $1900

26-2-111(4)

Wages

Minimum 75% of earned but unpaid wages, plus $2.50 per week per child; bankruptcy judge may authorize more for low-income debtors